BUREAU OF CONSUMER FINANCIAL PROTECTION Statement of Regulatory Priorities 1 A. CFPB Purposes and Functions
The Bureau of Consumer Financial Protecti on (CFPB) was established as an independent bureau of the Federal Reserve System by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, 124 Stat. 1376) (Dodd-Frank Act). Pursuant to the Act, the CFPB has rulemaking, supervisory, enforcement, and other authorities relati ng to consumer financial products and services. Among these are the consumer financial protection au thorities that transferred to the CPFB from seven Federal agencies on the designated transfer date, Ju ly 21, 2011. These authorities include the ability to issue regulations under more than a dozen Federal consumer financial laws. As provided in section 1021 of the Dodd-Fr ank Act, the purpose of the CFPB is to implement and enforce Federal consumer financial laws consistently for the purpose of ensuring that all consumers have access to markets for consumer financial products and services and that such markets are fair, transparent, and competitive. The CFPB is authorized to exercise its authorities for the purpose of ensuring that: (1) Consumers are provided with timely and understanda ble information to make responsible decisions about transactions involving consumer financial products and services; (2) Consumers are protected from unfair, deceptive, or abusive acts and practices and from discrimination; (3) Outdated, unnecessary, or undul y burdensome regulations concerning consumer financial products and services are regularly ident ified and addressed in order to reduce unwarranted regulatory burdens; (4) Federal consumer financial law is enforced consis tently, without regard to status as a depository institution, in order to promote fair competition; and (5) Markets for consumer financial products and servic es operate transparently and efficiently to facilitate access and innovation.

1 This Statement of Regulatory Priorities (State ment) supplements the semiannual regulatory agenda that is being published contemporaneously. The CFPB is submitting this Statement on a voluntary basis.B. Immediate Regulatory Priorities The CFPB is working on a wide range of initiatives to address issues in markets for consumer financial products and services that are not reflected in this notice because the Unified Agenda is limited to rulemaking activities. With regard to the exercise of its rulemaking aut horities, as reflected in the CFPB’s semiannual regulatory agenda, the CFPB’s immediate focus is on completing various rulemakings that are mandated by the Dodd-Frank Act and resolving a handful of proposals that had been issued by the transferor agencies prior to July 21, 2011. In additi on, the CFPB must issue a num ber of procedural rules relating to the stand-up of the CFPB as an independent regulatory agency. The semiannual regulatory agenda provides more detailed descriptions of individual rulemakingprojects. The CFPB is particularly focused on meeting the rulemaking deadlines set forth in the DoddFrank Act, in order to provide certainty to consum ers, financial services providers, and the broader economy. These rules include:

 Regulations governing international money transfers (remittances) under the Electronic Fund Transfer Act. These regulations concern disclosures, erro r resolution procedures, and other topics. The Board of Governors of the Federal Reserve Sy stem issued a Notice of Proposed Rulemaking concerning these rules in May 2011, and the CFPB now has responsibility for finalizing this rulemaking, as appropriate. Final rules on certain topics are required by January 21, 2012.

 An initial rule determining which nondepository covered persons are subject to the CFPB’s supervision authority as “larger participant[s]” of “other markets” for consumer financial products and services. The Dodd-Frank Act vests the CFPB with authority to examine all sizes of nondepository financial services providers engaged in mortgage lending and certain related services, payday lending, and private student lending. It also authoriz es examinations of a “larger participant of a market for other consumer financial products or serv ices,” as defined by the rule. An initial rule defining who is a larger participant in thes e other markets is requi red by July 21, 2012.

 Consolidated mortgage loan disclosures and related rules under the Truth in Lending Act and Real Estate Settlement Procedures Act. The Dodd-Frank Act requires the CFPB to develop consolidated mortgage loan disclosures to satisfy the require ments of both the Truth in Lending Act and Real Estate Settlement Procedures Act. The Dodd-Fra nk Act also imposes certain new disclosurerequirements, and the CFPB inherits proposals to amend Truth in Lending Act regulations relating to mortgage loan disclosures that were issued by the Board of Governors of the Federal Reserve System in August 2009 and September 2010. The co nsolidated disclosures proposal is required by July 21, 2012.

 Regulations defining lenders’ obligations to as sess borrowers’ ability to repay mortgage loans, including certain protections from liability for “qualified mortgages.” The Dodd-Frank Act requires lenders to make a reasonable, good faith determi nation of applicants’ ability to repay closed-end mortgage loans. “Qualified mortgages” as defined under the Act and by regulation receive certain protections from liability. The B oard of Governors of t he Federal Reserve System issued a Notice of Proposed Rulemaking concerning these rules in May 2011, and the CFPB now has responsibility for finalizing this rulemaking, as appropriate. Although the statutory deadline for final rules is January 2013, this rulemaking is a particular priority fo r the CFPB because it impacts basic underwriting practices and serves as a building block for other Dodd-Frank Act rulemakings.

 Regulations to implement other requirements concerning mortgage origination and servicing under title XIV of the Dodd-Frank Act. As described in more detail in the individual agenda entries, these regulations will address a variety of origination an d servicing practices, including loan originator compensation and anti-steering rule s, restrictions on high-cost loans, maintenance of escrow accounts and other servicing practices, and (on an interagency basis) various regulations concerning appraisals. Final rules are required by January 21, 2013. In carrying out these mandates, the CFPB is fo cused on developing clear, simple disclosures that will give consumers the information they need to determi ne which consumer financial products and services best meet their needs while avoiding unwarranted regu latory burdens on industry. The CFPB has made the consolidation of mortgage disclosure forms a prio rity because streamlining the existing, overlapping forms could significantly benefit both consumer s and industry members alike. Because the CFPB is at an early stage of its operat ions, it is still in the process of assessing the need and resources available for additional substantive rulemakings beyond t hose listed in its fall 2011 agenda. The CFPB expects to include any such projects that it realistically anticipates considering before October 2012 in its spring 2012 agenda.